Sale of Legacy Financial Guaranty Business and Strategic Transformation
The Wisconsin OCI recommended approval of Ambac's sale of its Legacy financial guaranty business, with a hearing scheduled for September 3, 2025.
Final approval of the sale is the last condition before closing, which is expected to significantly reshape the company's business focus.
Post-sale, Ambac plans to implement strategic initiatives including rebranding, expense realignment, new executive compensation, and investments in data and AI to accelerate growth and profitability.
Management emphasized that these initiatives are aimed at completing the business transformation and positioning Ambac for strong growth into 2026.
Ambac aims to create material shareholder value through these strategic moves and expects to provide updated guidance after the sale concludes.
AMERISAFE reported net income of $14 million or $0.73 per diluted share for Q2 2025, compared to $11 million or $0.57 per diluted share in Q2 2024.
Book value per share increased 3.3% year-to-date to $13.96; statutory surplus grew to $257 million from $235 million at year-end 2024.
Expense ratio rose to 31.3% from 29.8% due to investments in growth and increased insurance-based assessments; full year expense ratio expected to be in line with previous years.
Gross written premiums increased 4.3% to $79.7 million from $76.4 million in Q2 2024, driven by 12.8% growth in voluntary premiums despite moderation in audit premiums.
Net investment income decreased 10.2% to $6.7 million due to lower investable assets after special dividend payment, but yields on new investments improved by 230 basis points.
Operating net income was $10 million or $0.53 per diluted share, down from $11.1 million or $0.58 per diluted share in the prior year quarter.
The company repurchased 63,000 shares at an average cost of $44.55 totaling $2.8 million in the quarter.
Strategic Investment in Technology and AI for Client Engagement
Ameriprise is investing heavily in technology, digital capabilities, advanced analytics, and AI to enhance client experience and adviser productivity.
Investments include intelligence dashboards, automation analytics, and a new Signature Wealth platform launched in June to manage client assets more holistically.
Management emphasizes these investments as key to maintaining competitive advantage and adviser engagement, with productivity up 11% to $1.1 million per adviser.
Dafinchi